Exclusion of Gain from Sale of Principal Residence

Remove Benefit for Ultra-Luxury Real-Estate Flips

AKA “Modernize Principal Residence Tax Benefits to Reflect Intended Use”


Which agency/agencies promulgated the regulation? *
Internal Revenue Service (IRS)
Which title, parts, and/or sections of the Code of Federal Regulations (C.F.R.) should be rescinded? *
Rescind the unrestricted applicability of 26 CFR §1.121-1 by issuing an amended rule limiting exclusions to primary residences below a designated fair market value threshold.
What is your name?
—OPTIONAL--
Is your proposed rescission a notice of proposed rulemaking, final rule, direct final rule, interim final rule, or interpretive rule? *
Notice of Proposed Rulemaking
What is the name of the regulation being rescinded, if applicable? *
Exclusion of Gain from Sale of Principal Residence
Please provide a short summary of the justifications for the rescission. *
Modernizing the exclusion by introducing a reasonable market value cap to prevent excessive public subsidy of ultra-luxury real estate gains.
Please insert the address of the agency. [NPRM, DFR, and IFR only]
Department of the Treasury Internal Revenue Service 1111 Constitution Avenue, NW Washington, D.C. 20224
Please insert the contact information for the agency. *
public_liaison@irs.gov
What is the background for the regulation being rescinded? *
The principal residence exclusion was designed to protect modest homeowners, not to subsidize high-end luxury property transactions.
Explain the reasons for the rescission. *
Implementing a value cap would better align the tax benefit with its original intent, reduce inequities, and improve fiscal responsibility.
Describe the text of the relevant C.F.R. provisions as it will exist after the rescission. *
Exclusions will apply only to residences below a set fair market value threshold, indexed annually for inflation.
Please insert the name of the current agency head. *
Michael Faulkender
Please insert the title of the agency head. *
Acting Commissioner of Internal Revenue